Final answer:
The statement is true as different users of financial statements have different objectives based on their interests and needs, such as profitability, liquidity, or operational performance.
Step-by-step explanation:
The statement that 'the objectives of a financial statement analysis will vary depending on the perspective of the financial statement user' is true. Different users have varying objectives when analyzing financial statements. Investors might look for profitability and growth potential, creditors may be more interested in liquidity and solvency, and management might focus on efficiency and operational performance.
Distinguishing Fact from Opinion
An analytical report which includes financial statement analysis should be based on facts. It would involve using certain statistics and data to evaluate the health and performance of an organization. In addition to evaluating past and present financial conditions, users can predict future performance based on this analysis—but these predictions can also depend on the user's objectives.
Objective Stance and Purpose
When writing or analyzing reports, maintaining an objective stance is crucial. The purpose of such analysis is to provide a multi-faceted examination of the financials without personal bias, which is why it is essential for different users to be clear about their unique objectives for the analysis.